Nearly half of Canadians are losing more sleep due to financial stress for a sixth year in a row, according to a new survey.
Canadian research company FP Canada’s 2023 Financial Stress Index conducted an online survey of 2,004 Canadians between March 29 and Apr. 7, using Leger’s online panel. The sample included a diverse range of ethnicities and cultural backgrounds to ensure the results were reflective of all Canadians.
According to the findings, money is the top source of stress for 40 per cent of Canadians. Nearly half (48 per cent) of Canadians have lost sleep over money. As a result, one-in-three (36 per cent) Canadians are experiencing mental health challenges, such as anxiety or depression.
“Canadians continue to struggle with their financial picture, and financial stress can have a significant impact not only on financial well-being, but also on mental health,” President & CEO of FP Canada Tashia Batstone said in a media release last month.
However, there is a silver lining. The index indicated that 59 per cent of Canadians who work with a professional financial planner are less likely to feel money-related stress and financial regrets and, in turn, are more hopeful about their financial future.
The report says over 55 per cent of those surveyed who work with a financial planner have revealed that financial stress has had no negative impact on their lives. In contrast, about 38 per cent of survey respondents who have a financial planner say they have lost sleep over fiscal worries.
“Despite these advantages, only 36 per cent of Canadians work with some type of financial professional, and even fewer – only 5 per cent – work with a financial planner specifically,” the report stated.
Some of the major factors specifically contributing to Canadians’ financial stress are surging inflation and high gas and grocery prices.
“As Canadians struggle to afford groceries, gas and other goods and services, nearly half (48 per cent) have less disposable income compared to a year ago, a substantial increase from 2022 (39 per cent),” the study said.
In addition, Canadians are struggling to save money, with 35 per cent concerned about retirement and 32 per cent concerned about saving for major purchases. Canadians between 18 to 34 years old are most concerned by the latter.
On the bright side, the index shows that Canadians are working towards reducing their financial stress, with 44 per cent tracking expenses, 36 per cent paying down debt, and 34 per cent saving more.
